U.S. Scrutinizes Bombardier’s Canadian, Irish Incentives


Bombardier is getting almost $700 million in loans from the Canadian, Quebec and Irish governments to get its CSeries program going and that’s prompted an investigation by U.S. Trade Representative Susan Schwab. “Washington will take a very careful look at the support announced by Canada, Quebec and the U.K.,” Schwab’s spokeswoman Gretchen Hamel told Bloomberg News. But Bombardier spokesman assured Bloomberg that the loans are above board.

If Schwab decides otherwise, Bombardier could be hauled in front of the World Trade Organization. The Canadian and Quebec governments have provided loans worth $437 million to support final assembly of the 110-to-130-seat airliners and Ireland is chipping in $248 million for the plant that will build the wings. Kansas City, Mo., was in the running for the assembly plant and the state government offered $880 million in incentives. Total development costs for the CSeries could be as much as $3.3 billion, according to Bombardier.